New rules of funds recognition between mainland, Hong Kong expand investment options

The revised regulations on mutual recognition of funds between the Chinese mainland and Hong Kong, which went effective on Wednesday, have expanded investment options for investors. 

The new rules increase the types of fund products eligible for mutual recognition between the two regions, in addition to the existing categories of conventional equity, mixed, bond, and index funds.

Another change to the scheme is that the quota on the amount of funds that can be sold has increased from 50 percent to 80 percent, and the adjustment applies both ways. 

Hong Kong bank industry insiders said that under the new rules, more varieties of Chinese mainland fund products will sell in Hong Kong, and that their sale volume will increase too. 

"We can now sell a relatively complete range of mainland fund products. The scope of investment mainly includes government financial bonds, credit debt products and products that are on the Shanghai and Shenzhen Stock Exchanges, with a comprehensive coverage. The range of individual funds that can be sold has also expanded," said Arnold Chow, general manager of the personal digital banking product department at the Bank of China (Hong Kong). 

On the Chinese mainland, many investors said they are interested in investing in the Hong Kong bourse. 

"After the new regulations took effect, more and more investors are coming to consult about mutual recognition funds. Most of them are looking for overseas investment opportunities," said a Beijing investor. Local bank clerks said the investment interest has grown after the new regulations came into force. 

"After the new regulation took effect, more and more investors consult about mutual recognition funds. Most of them are looking for overseas investment opportunities," said Hu Jing, client manager of China Construction Bank's Beijing Xingrong Branch. 

On July 1, 2015, the Chinese mainland and Hong Kong formally established a mutual fund recognition scheme. 

The latest data from the China Securities Regulatory Commission (CSRC) show that as of the end of November 2024, 41 mainland-bound Hong Kong funds have been registered under the scheme, 38 of which have been publicly sold on the mainland. They are mainly stock and bond funds, and their transactions are operated by 21 Hong Kong licensed asset management institutions. 

Meanwhile, the Securities and Futures Commission of Hong Kong has approved 43 Hong Kong-bound mainland funds under the scheme, 22 of which have been publicly sold in Hong Kong. They are mainly mixed funds, and their transactions are operated by 22 mainland fund managers.

New rules of funds recognition between mainland, Hong Kong expand investment options

The tradition of appreciating beautiful lanterns during Spring Festival celebrations has kept China's lantern workshops busy in the last lunar month in the run-up to the Year of the Snake.

In Zhangzhou City of east China's Fujian Province, a special lantern show was staged on Friday night.

A 100-meter-long golden snake-shaped boat made with 2,025 lanterns sailed on the river, stopping residents and tourists passing by to watch and pray.

Meanwhile, a flyboard rider in gorgeous clothing presented a fire pot performance, a national-level intangible cultural heritage, illuminating the river with sparks.

"The fire pot performance and the lantern show, one dynamic and the other static, are particularly charming in this environment," said Zheng Chenghong, a tourist.

"I'm very excited and happy to watch this performance combining water jet pack and fire pot," said Chen Jinwei, a local resident.

In Hejin City of north China's Shanxi Province, more than 20 craftspeople at a cultural center are busy making rotating lanterns, a national-level intangible cultural heritage.

As the process is very complicated, it usually takes 10 craftspeople a day to make one lantern.

"This is a new work we've created this year. It's called 'all flowers in full bloom.' Despite the small size, the lantern is very hard to make, as it involves a dozen of processes. The papercut fish on the lantern symbolizes a wish for abundance, and the lantern is very beautiful when it whirls," said Li Erpeng, an inheritor of the craftsmanship.

In Taigu District, Jinzhong City of Shanxi, a workshop has used 3D printing technology in lantern production, cutting down on production time from more than 10 days to just one or two days.

The Spring Festival, the most important traditional festival in China, will fall on Jan 29. The year 2025 will mark the Year of the Snake, the sixth animal in the 12-year cycle of the Chinese zodiac.

Festive lanterns in hot demand as Chinese New Year nears